bang_miskin already too deep into this. Losses redder than those found at battle of Verdun. Just like Genting in 2020, those that cannot handle the heat cut loss, those who do stay on course. Bang already used to large paper loss. Furthermore Harta is no touch and go company, in fact already made a ton of $$$ from high ASP in 2020-2021. So why worry? Don't believe in your own analysis and reasoning? For medium, long term no brainer lah.

selling pressure inkambing now entering deep red territory

Market still very jittery and panicky. Good likelhood may enter red territory today. Main saham sarung getah must be steady. Take opportunity from jittery investor.

Relax le stevenckheng. Let people take profit. Glove holder waiting to enter at diskaun price.

CBP ban is crucial to my decision. Bring in uncertainty because takut European countries may follow suit with ban. Even Tan Sri also unsure of future implication, cepat2 tackle the ban. Now with that lifted, will have a measurable impact in the short term.

With CPB ban lifted, bang miskin readying ammo to enter Topglove. Kalau jatuh, I masuk.

Wait, just got the new CPB lifted ban?! Wah boleh pecah RM4

Waaaoooo! Siapa kemarin beli sudah untung gila!

Endgame? Naik game. Manyak hijau. Kemarin siapa beli udah untung la

So many cash mana boleh bankrupt? If any of the Top 4 goes bankrupt in 2022, I senyap2 beli 4D 100 big 100 small. If the impossible already happened, might as well untung from it.

Okay I spoke too soon. Air terjun inkambing

Like what @oasischeah mentioned above, there may be potential force selling on Friday. I don't forsee any strong momentum to drop below 6.40 today, may even creep up and close around 6.50.

Queuing small portion at 6.45. tomorrow lagi jatuh, i lagi enter.

What cycle? Downtread starts since late last year, hampir setahun lah bang. All those rugi sudah cut lama loss. New ikan here nak either hold term or day trade. Yg masuk at RM20 hold sampai skarang sudah lupa password ataupun sudah lupa makanan udah busuk dlm peti sejuk.

Gemfinder you ada 5 ribu posts. Takkan tak tau macam na main saham.

Yes I believe this kaunter very undervalued, but must be patient when kutip at diskaun price. Tiap2 kali bang beli, diaorang offer bigger diskaun. Bang_miskin felt like kena tipu. Feels bad man.

One can blame boss Kuan, but media overhype China threat but forget to point out that prices will remain higher than prepandemic level. Boss Kuan also pointed out that despite China's threat Malaysia is still boss in glove production. If normal investor cannot handle the truth, we glove holders continue to kutip cheap2.

RM5 is cheap even at prepademic level. But then again worse things have happened.

Thanks for the tip @oasischeah. bang_miskin will ready ammo for tomorrow.

Haha panicky seller overreact. Who dump 1.1 million shares in one go? Bang_miskin perlu cautious, tapi tempted to catch falling knife

PAOS not about palm oil ke? Today naik 11% takde biji masuk le. Already dabble with palm oil beginning of this year. Sudah take profit and transfer to glove.

Harta oredi largest portion in my portfolio. Really nak diversify sikit. Tapi kalau harga drop below 6, will consider topping up. Now bad sentiment still lingering, don't want waste ammo.

This kaunter masuk peti ais for the time being. Tiap2 hari tengok kauter merah, mata pun merah.

waaa when is china going to do palm oil ?

Need to tackle the climate issue. Maybe if the entire Hainan island is devoted to palm oil production.

JPM kaki also singgah Harta, tapi warung Harta banyak sunyi, skejap sudah bosan. TP pun lupa umum.

Bang_miskin always minum kopi kat warung Harta. Tapi kadang-kala nak singgah warung Top Glove kerana sini banyak riuh, banyak meriah. Nak tengok siapa panik2 cut loss, siapa kutip murah2 at deep diskaun.

Hope afternoon up. Already holding too much Harta at current portfolio. Must offload a little and diversify a bit.

I also very dissapointed with current price trajectory. I expected more panicky sellers. Have to buy at 6.68 pulak. If afternoon can buy at 6.66 I belanja setan.

Sell upon news is to be expected. Too bad no more ammo to top up.

Posted by pdchs > Sep 8, 2021 10:04 AM | Report Abuse

Orang China bukan bodoh... this statement not 100% wrong...
Should be

All businessman in the world not bodoh.....

Okay your statement is more correct than mine. I am addressing current concern with competition from China. If you ask me, China really wants to up its game in the semiconductor industry. If really want to worry about China threat, that's the sector to worry about in medium/long term.

"ASP started to ease in the April to June quarter and is expected to decline by 30% EVERY quarter going forward until 1Q22."

I see this as somewhat of a good thing. If ASP do indeed drop drastically in the coming months, it will deter new entrant into the industry. Orang China bukan bodoh. Tak boleh untung, kenapa nak rebut2 masuk?

bang_miskin no stranger to big losses. if you truly believe in this company, any drastic drop in price gives you an opportunity to beli. Bang_miskin regrets not having enough cash to beli today.

Whether buy or sell, most important is not to make big decision under duress.

@Sogbashen I also hold a sizable Genting portfolio and still believe in the future of our gloves industry (Harta most of all). Profit will stabilised by next year or so, but some people like us believe that prices forward will exceed pre-pandemic level. When current prices are trading at pre-pandemic level, many of us think it is a steal even when glove price continues to trend downtrend.

I can still vividly remember back in mid 2020. I am holding tight on my Genting shares even when prices dip below RM3. Paper profit was -30% for many months. I believed that one day this pandemic will be over and the entertainment industry will return to normal (new normal). So I am used to experiencing big losses, that's why I am still miskin, although less so given Genting price trend this week :)

continue:

Summarize:
Although the entire AGM has received many questions from investors, the focus is basically on whether the ASP can be maintained, how to deal with the situation after the ASP decline, competition from China, etc. (the answers can be found in the above narrative)

As a countermeasure, HARTA is mainly through continuous innovation of the management team (institutional management, including the introduction of experienced professional managers from multinational companies), continuous innovation and launch of distinctive products, and automated production lines to reduce production costs and improve production efficiency .

HARTA is a company controlled by long-term management. They said that after the epidemic, they will still be committed to increasing EPS (net profit per share). The company's KEDAH project will also be the next important growth milestone.

Target: The output will reach 95 billion in 2027, and 143 billion after the completion of the KEDAH plant

Some key words of management:
~ The sales price after the epidemic will be higher than before the epidemic, but it is because of the increase in production costs
～The profit rate will be normalized by the end of 2021
~ The United States is unlikely to participate in glove production (prices have fallen, and production costs in the United States are high)

Hartalega shareholders meeting

Main business:
✅ The world's largest manufacturer of nitrile gloves
✅The production capacity is as high as 44 billion gloves per year
✅ Customers are mainly from Europe, America and Western countries

The entire general meeting of shareholders lasted for an hour and a half, and most of the time was the management (Kuan and his sons) doing investor presentations and question-and-answer sessions (QnA) for shareholders.

Excerpts from the Extraordinary Shareholders:
1) Short-term resistance
Management believes that short-term demand will be weak,
Mainly because in the first half of this year, many customers (including dealers) bought enough inventory at high prices.
Waiting for inventory consumption.

Affected by the fall in glove prices,
Customers from markets in developed countries have been very cautious.

The supply of gloves increased,
Especially the big coffees from Malaysia, Thailand and China have increased their production capacity.
Lead to certain pressure on the sales price.

Management expects that in the coming months,
The sales price will be "sharp drop" (compared to the peak price in April-June),
The gradual decline in raw material prices offset part of the lost profit margin (profit margin)

2) Long-term outlook
Structural changes in demand,
The demand in the glove market after the epidemic compared to before the epidemic,
The usage will be higher,
Especially from developing countries,
Such as emerging markets,
Mainly because of the increase in hygiene awareness.

3) FY2022 plan
Project name: NGC 1.5 (Plant 8-11)
Investment amount: RM 1.7 billion
Plant: 4
Under construction,
FY2022 can start the production operation of the first production line in the first quarter,
The entire project can increase the company's total production capacity up to 19 billion gloves.

4) More projects in the future
Project name: NGC 2.0
Investment amount: RM 3.2 billion
Plant: 7

Project name: NSM KEDAH
Investment amount: RM 7 billion
Plant: 16

5) Upgrade plan of operational efficiency
So far,
The company’s 2 plants (2 out of 7),
Is already completely digital,
Cater to Industry 4.0,
The production speed can reach 45k gloves per line per hour.
There will be more automation and digitization in the coming fiscal year,
The goal of factory automation is to reduce labor costs by 20%

An automated glove packaging system is already being tested.

6) Epidemic prevention
More than 90% of employees have been vaccinated (two doses)

7) Reduce carbon footprint (carbon footprint)
The company has installed many systems to reduce carbon emissions,
Including solar panels, biomass power generation systems, thermal energy emissions in use systems, etc.

QnA

A) How to deal with the profit erosion caused by the lower selling price (ASP)

Answer: The company will strive to improve and improve operational efficiency, especially through automated production solutions.

B) The proportion of foreign workers, how to reduce dependence on foreign workers

Answer: Up to 60% are foreign laborers. Through the recruitment of local employees and automated production, the dependence on foreign labor can be reduced.

C) There are many new glove companies in the market, will they take away their customers?

Answer: Most of the customers are distributors, and they have many years of cooperation experience with the company. Customers will not jump off the ship rashly, and it is not expected to have much impact.

D) How much will the selling price ASP drop? Capacity utilization rate

Answer: In the coming quarter of QoQ, ASP is expected to drop by 30, Q2 (this quarter) capacity utilization rate is 70%, because in July and August only 60% of the labor force

E) The progress of the company's innovative product AMG, and how the latest COATS/MDG series gloves contribute to the company

Answer: AMG is still not certified by the FDA, COATS and MDG will contribute no more than 10% of the business (in the next 3-5 years)

F) Threats from China's new production capacity

Answer: It is undeniable that in the long term, the new production capacity from China will affect the profitability of the entire industry. The company will hedge this risk by improving operational efficiency and achieve the ability to make continuous profits. The company is currently produced in nitrile gloves in the world. The lowest cost will also strive to maintain this position.

G) OEM/OBM strategy

Answer: At present, we are focusing on OEM. We have our own OBM market in China, India and Australia. We will also focus on developing our own brand in the future.

H) How to use the huge amount of cash on hand

Answer: There is no plan to purchase, and cash will be invested in efforts to expand production capacity and improve production efficiency.

^bang_miskin tak boleh baca bahasa Cina, so I guna google translate. I am quite satisfied with the direction of the company and they have also acknowledge the increased competition from China. In my opinion this kaunter can hold long term.

Good quality ke bad quality ke still vaccine. Masih boleh pakai. Sooner we reached herd immunity, sooner we can get out of this mess.

Apa ni kaunter. Please no tiap2 hari air terjun. Soon bang_miskin will become bang_pengemis

Josephn is correct. Selloff happens few days ago when price peaked near 7.30. EPF buy and sell very normal la bang and kak. Don't be surprise EPF is accumulating glove stocks in light of recent price drop.

Harta,your price suppose to go up, not the other way.

With decent price movement last week, this week can't even reach modest TP of 7.50.

Masuk freezer again. see next month masih boleh pakai.

Hari ni harga Harta hancur, hati pun hancur.

Bang Koon talking about Hiap Teck or Genetec? I confused

Afternoon roller coaster, missed chance to top up at 7.15

7.25 is a good price to end this trading week.
Hope that next week could reach 7.5 or even 8. :)

@Glovefinished I wished it was 5. When that happens, I will sell all my other counters and go all in into Harta.

Currently this counter fluctuates around RM7. At the very least it's not 6 days red, 1 day green.

Glove counters still suffer from poor sentiment. Looking at the bright side, if price drops it's a good opportunity to buy.

Wahaha closing period price naik like phoenix rising from the ash. Sayang today did not day trade would've made a decent penny.

Oof today not a good day for Harta and Bursa in general. May have to do with current political uncertainty. I still keep mine in the freezer. Ada dividend, kutip and buy more Harta. Takde dividend takpe.

High daily fluctuation also makes it a decent counter for day trading. I engaged with it occasionally but usually put it in a freezer for weeks

I have made a decent return from gloves in 2020. Went to tech stock beginning of this year, and hopped back into gloves during the delta surge. Harta was surging to 10 back then. Made a mistake of buying high on that day. When price dropped I keep topping, now average price at 8.6. Not the best price but I am thinking long term. I have a decent percentage in recovery stocks (eg Genting). So waiting for long term Bursa rebound.

if Harta price continues to fall, I will kutip. Thankfully my other counter price rebound slightly. Can trade for Harta. Glove price low is to our benefit, can buy low.

Somehow I worry price will continue to fall below 6 in the coming months. Let's see